Expanding Investments: Romania’s EUR 3 Billion Subsidies for Solar and Wind Capacities
Romania is set to extend substantial subsidies amounting to RON 15.2 billion (over EUR 3 billion) to new solar and onshore wind production capacities. This move, executed under a contract for difference (CfD) mechanism, aims to incentivize and stimulate fresh investments in green energy production.
Endorsement from the European Commission: A Green Light for State Aid Scheme
The European Commission has given its approval to Romania’s state aid scheme, signifying a significant step in the country’s commitment to fostering green energy initiatives. This endorsement solidifies Romania’s position in aligning with European directives for sustainable energy practices.
Competitive Bidding for CfDs: Encouraging Fair and Efficient Allocation
The subsidies will be allocated through a competitive bidding procedure, ensuring fair and efficient distribution among potential investors. The CfD mechanism involves compensating investors based on the positive difference between the exercise price (contract parameter) and the reference price (actual market price in a specific month).
A Strategic Framework: Supporting Green Transition and Reducing Fuel Dependence
The approval for this subsidy scheme aligns with the Temporary Crisis and Transitional Framework for State aid measures, initiated by the European Commission on March 9, 2023, and amended on November 20, 2023. This strategic framework encourages support measures in sectors crucial for expediting the green transition and diminishing fuel dependence.
In conclusion, Romania’s substantial financial commitment to green energy underlines its dedication to fostering sustainable practices and leveraging the CfD mechanism to drive investments in solar and onshore wind capacities.
Source：romania-insider.com
